In RMR’s continuing series The Money Backers, we give readers a glimpse of who’s who and who owns what in energy’s private equity world.  From the largest to the smallest to the newest, we look especially at those firms making hay in the midstream industry to provide the capital infusion required to give growth projects liftoff.

KKR & Co.

KKR & Co. Inc. is an American global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate, credit, and, through its strategic partners, hedge funds.

During the “buyout boom” of the late 1980s, the biggest news to travel between the lips of Wall Street bankers and the ears of its corporate investors was the $31.1 billion buyout of RJR Nabisco. Drama surrounding the deal and its colorful actors played on magazine covers and front-page headlines as the N.Y.-based KKR investment group collected a $75 million transaction fee and secured its place in high-finance history.

Since then, KKR has risen to the ranks of one of the world’s largest investment firms with offices across the U.S., Europe, the Middle East, Africa, and Asia-Pac. KKR’s investments include oil and gas assets in the upstream sector as well as energy infrastructure across the globe. On the midstream side, the firm continues to shoot for “big” with its latest announcement to buy a 65% equity interest in TC Energy’s Coastal GasLink Pipeline project. The $6.6 billion, 416-mile Coastal GasLink will transport 2.1 BCFD of natural gas from B.C., to an LNG liquefaction and export facility also in B.C. That facility is currently under construction.

Here’s a look at KKR’s midstream portfolio companies in the U.S.:

  • Georgia-based Colonial Pipeline, the largest refined product pipelines in North America. Colonial transports more than 3 MMBbls of gasoline, diesel and jet fuel between the Gulf Coast and the N.Y., harbor area.
  • Genesis Energy, headquartered in Houston, operates four divisions that include offshore pipeline transportation, refinery services, marine transportation, and onshore facilities and transportation in Texas, La., Ark., Miss., Ala., Fla., Wyo., and the Gulf of Mexico.
  • Williams’ Rocky Mountain Midstream, the largest private natural gas gathering and processing and crude oil gathering operations in the DJ Basin. Tulsa-based Williams and KKR acquired these systems from Discovery Midstream in 2018 for $1.2 billion.

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